Irish venture capital surges twentyfold to $668m in first quarter, but this can be attributed to a small number of significant deals.
Ireland’s venture capital (VC) market has staged a dramatic recovery, with investment soaring twentyfold to $668m in the first quarter of 2025 compared with the same period last year, according to new data from KPMG.
The Irish market bucked global trends with 28 deals completed in the quarter, up from 17 in Q1 2024, when just $34m was invested.
“Irish VC fundraising was exceptionally strong in Q1, led by significant capital raises from Tines, XOcean and Fire1”
The resurgence was driven by three transactions exceeding $100m each, with Dublin-based cybersecurity start-up Tines leading the pack after securing $125m at a valuation above $1bn.
AI fuels venture capital resurgence
“Irish VC fundraising was exceptionally strong in Q1, led by significant capital raises from Tines, XOcean and Fire1,” said Gavin Sheehan, partner in deal advisory at KPMG Ireland.
“Globally, a lower deal count quarter-on-quarter is reflective of a more cautious sentiment given broader geopolitical uncertainty since the turn of the year. Notwithstanding these challenges, VC investment in Ireland mirrored international trends in terms of increased deal sizes and later stage investment with robust interest in the AI, big data and medtech sectors.”
The Irish performance came against a backdrop of mixed global venture capital activity. Worldwide VC investment reached an 11-quarter high of $126.3bn, up from $118.7bn in the previous quarter, despite ongoing geopolitical conflicts and delayed public market listings.
This global increase was largely propelled by a series of substantial AI-related financings, including OpenAI’s record-setting $40bn fundraise. Meanwhile, European investment remained steady at $18bn, though deal volume declined from 2,314 to 1,883 quarter-on-quarter.
Ireland’s strongest quarter in several years was highlighted by medical device company Fire1 and ocean data services provider XOcean each raising $120m. The country’s fintech and medtech sectors continued to attract substantial investor interest, benefiting from robust innovation ecosystems and a strong talent base.
Despite the positive start to 2025, sentiment among venture investors grew more cautious toward the quarter’s end as geopolitical uncertainties mounted. Analysts suggest deal volume may moderate in Q2 as investors assess the implications of potential US tariffs on their operations and expansion plans.
Industries such as AI, health and biotech, and fintech are expected to maintain their appeal for investment, particularly for established start-ups with proven traction, said Sheehan, who also noted the launch of KPMG’s all-Ireland Global Tech Innovator competition, aimed at identifying the country’s next wave of technology disruptors.
The contrast with Asia-Pacific was stark, where both deal value and volume fell to record lows, dropping from $18.9bn across 2,522 deals in Q4 2024 to just $12.9bn across 2,149 deals in the first quarter of 2025.
Corporate venture capital activity globally rose from $69.4bn to $80.8bn quarter-on-quarter, with US deals accounting for the majority at $65.5bn.
Meanwhile, the median size of late-stage Series D+ financings increased substantially in both the Americas and Europe — rising from $91.6m to $96.2m in the US and from $84.5m to $177.5m in Europe.
Main image at top: Photo by Jakub Żerdzicki on Unsplash
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